Higher maintenance costs are already having an impact on
transport operator SMRT Corp's bottom line.
The company, which faces a public inquiry over the major train
breakdowns in December, and whose chief executive Saw Phaik Hwa
quit as a result, posted a 13.9 per cent fall in net profit to $37
million for the third quarter.
This was despite a 10 per cent rise in revenue to $268.2 million
for the three months to Dec 31. That rise was offset by a 16 per
cent increase in costs to $227.7 million, including repairs and
maintenance expenses, which rose 14.8 per cent to $20.9
million.
Chief financial officer Catherine Lee said at Tuesday's results
briefing that maintenance cost is likely to rise in the quarters
ahead but would not say by how much. Ms Lee said it was difficult
to give precise figures for the dollar impact of the December train
service disruptions, but said that it was 'a couple of million of
dollars'.
-- ST